1 in 4 Jan Dhan Accounts in SBI, IOB and Other PSBs is Now Inoperative

The number of inactive Pradhan Mantri Jan-Dhan Yojana (PMJDY) accounts in public-sector banks has gone up to 26%as of September 2025, compared with 21% a year earlier. This marks a slowdown in the overall activity under the financial inclusion programme launched in 2014.

Increase in Dormant Jan Dhan Accounts

Data shows that out of 545.5 million Jan Dhan accounts in PSBs, about 142.8 million were inactive by the end of September. As per RBI rules, a savings account becomes inoperative if there are no transactions for over two years. For 2025-26, PSBs were given a target of opening 20 million new accounts, and 13.2 million, or 66%, have been opened so far.

Bank-Wise Distribution

Among large public-sector banks, Bank of India (33%) and Union Bank of India (32%) had the highest share of inactive accounts. Indian Overseas Bank (8%) and Punjab & Sind Bank (9%) reported the lowest. The share of dormant accounts in the State Bank of India rose from 19% in September 2024 to 25% in the same month this year.

Account Closures and Card Issuance

Earlier this year, around 1.5 million zero-balance accounts were closed by PSBs as a one-time clean-up exercise to remove duplicate and non-functional accounts. The gap between Jan Dhan accounts and RuPay card issuance remains wide. Of the total accounts, 375.3 million have RuPay cards, while 170.2 million do not.

Rural Reach and Average Balances

Government data shows 67% of Jan Dhan accounts are in rural and semi-urban areas, and 56% are held by women. The average balance per account has grown 3.7 times in ten years, reaching ₹4,768 as of August 2025.

Broader Findings

The Global Findex Report 2025 by the World Bank noted that 35% of Indian bank account holders were inactive by 2021. The report cited distance from banks, lack of trust, and no perceived need as key reasons behind the inactivity.

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Conclusion

While account ownership has expanded, usage remains weak, with one in four Jan Dhan accounts now inactive. While Jan Dhan has deepened financial inclusion, the next challenge lies in ensuring active usage, digital literacy, and continued engagement, especially in rural areas.

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